Barriers to Strategy Implementation among Real Estate Companies in Kenya: A Case of Suraya Property Group Limited

Abstract:

The purpose of this study was to investigate the barriers to strategy implementation among real estate companies in Kenya focusing on Suraya Property Group Limited. The study was guided by the following three research questions: What are the barriers Suraya Property Group Limited face while implementing their strategic plans? What solutions have Suraya Property Group Limited applied to handle the barriers they face while implementing strategic plans? Which of these solutions are deemed effective by the management of Suraya Property Group Limited?
This study adopted a descriptive survey research design. The sample population was the 95 employees of Suraya Property Group Limited. A stratified sampling technique to select a sample size of 76 respondents was used. Data was analysed both for descriptive statistics (frequencies and percentages) and inferential statistics (correlation analysis). Tables and figures were used in presenting data results.
The findings on barriers to strategy implementation established that majority of the respondents agreed that barriers to strategy implementation were: lack of sufficient resources to operationalize the strategic plans; the Suraya management did not put in place adequate plans to coordinate the implementation of the strategic plans; the strategic plans did not take into account personal expectations hence the stakeholders were not motivated towards the implementation process; people did not just buy-in the idea in implementation of the strategic plan; and, there was no accountability and there was a feeling that the resources for strategic plan implementation were somehow misappropriated.
Findings on the solutions to strategy implementation barriers showed that there should be the idea that clear communication from the top management to various operational units, allocation of adequate financial resources in execution of the strategic plans, relevant members of staff should be involved during strategy planning and development, staff should be motivated and sensitized on the strategic plans, proper monitoring system for the implementation of the strategic plans, and flexible strategic plan to take care of unforeseen circumstances like inflation, new government legislation, among others.
The findings of this study revealed the existence of a statistically significant relationship between solutions and effective solutions to strategy implementation barriers. Effective communication and employee involvement were cited as effective solutions to strategy implementation barriers.
The study recommends that the management of Suraya Property Group Limited should put more effort in ensuring effective communication during strategy formulation and its implementation. This is assumed to bridge the gap between formulators and implementers. Information flow should be fast and clear from the top management to the individual staff in various operational units in Suraya Property Group Limited. Employee involvement was another effective solution. Suraya Property Group Limited should apply this concept of involving relevant staff members when developing strategy and during its implementation. The strategic plans are formulated and implemented by people, as a result, staff involvement becomes key. When the employees are involved, their opinions, and aspirations will be taken into consideration; in effect, implementation process will be in synchrony with their personal objectives, passion, skills and talents. It is suggested that such a study be done in other firms in other sectors to increase the statistical power of the study and more reliable results. There is therefore a great potential for research in this direction. This study can also be improved by looking at post implementation of strategic plans.

Description:

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)